SEBI Issues Updated Master Circular for Portfolio Managers

The Securities and Exchange Board of India (SEBI) has released an updated Master Circular for Portfolio Managers, consolidating all relevant regulatory provisions, guidelines, and directives issued up to March 31, 2025, into a single comprehensive document.

1. Scope and Coverage

The Master Circular serves as a one-stop reference for all portfolio management-related regulations and includes detailed provisions relating to:

• Registration Requirements for Portfolio Managers
• Operating Guidelines for conducting portfolio management activities
• Investment Norms including permissible instruments and limits
• Disclosure and Reporting Obligations to clients and SEBI
• Fee Structures and Charges that may be levied by portfolio managers
• Grievance Redressal Mechanisms and client servicing standards
• Performance Benchmarking norms for evaluating portfolio manager performance

2. Rescission of Earlier Circulars

With the issuance of this Master Circular, all earlier circulars and directions issued by SEBI relating to Portfolio Managers have been rescinded, ensuring that stakeholders now refer to a unified, updated regulatory framework.

3. Objective and Impact

This move is aimed at:

• Simplifying compliance for portfolio managers
• Enhancing regulatory clarity and transparency
• Providing a centralised reference to improve operational efficiency
• Ensuring consistency in implementation of SEBI’s regulatory intent across the industry

SEBI’s updated Master Circular is part of its ongoing efforts to promote ease of doing business, regulatory simplification, and investor protection in the portfolio management segment.